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CLA2601 Assignment 2 (COMPLETE ANSWERS) Semester 1 2025 (770920)- DUE 16 April 2025

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CLA2601 Assignment 2 (COMPLETE ANSWERS) Semester 1 2025 (770920)- DUE 16 April 2025; 100% TRUSTED Complete, trusted solutions and explanations. For assistance, Whats-App 0.6.7-1.7.1-1.7.3.9. Ensure your success with us.. Question 1 Lesego and Phumudzo are the trustees of the Build Your Own Home Trust, which carries on its business in the construction industry. Even though the trust deed of Build Your Own Home Trust does not explicitly authorise the trustee/s to purchase a back actor to excavate and prepare building sites for construction, Lesego and Phumudzo purchase a back actor for the Trust. Considering the requirement that trustees must preserve trust assets, discuss whether Lesego and Phumudzo have acted lawfully. 5 marks Question 2 Boitumelo and John are considering the creation of a trust. They have no previous experience of trusts and approach you for legal advice as they need to understand the meaning and definition of a trust, and the legal nature of trusts. Advise them fully regarding the above aspects. Refer to relevant case law where applicable.

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CLA2601
Assignment 2 Semester 1 2025
Detailed Solutions, References & Explanations

Unique number: 770920

Due Date: 16 April 2025
QUESTION 1




In South African trust law, trustees are fiduciaries who are required to act in the best interests
of the beneficiaries and in accordance with the trust deed. A key duty imposed on trustees is
the duty to preserve trust assets and to act within the scope of their powers as outlined in the
trust deed. In this case, Lesego and Phumudzo, acting as trustees of the Build Your Own
Home Trust, purchased a back actor (excavator) even though the trust deed does not explicitly
authorise such a transaction.




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